Department of Defence Annual Report 2008-2009

| Department of Defence | Vote 19 |
REPORT OF THE ACCOUNTING OFFICER
for the year ended 31 March 2009 (continued)
06/07 AG
ANNUAL
REPORT
REF
RECOMMENDATIONS MADE
IN SCOPA RESOLUTIONS
DATED 8 FEB 08
DOD PROGRESS ON ACTION PLANS
| Financial Performance |
Page
190-191
Page
191-192
d) management performs independent
reconciliations and review information on a
regular basis to ensure proper classication
and prompt recording of transactions and
that sufcient documents are kept and
always available.
Par 3 – Lease commitments, commitments and
clearing accounts. The Committee recommends
that the Accounting Ofcer ensures that:
a) internal controls are implemented to ensure
that transactions and other signicant
events with respect to lease commitments
are properly identied, classied, promptly
recorded and disclosed;
The reason for the misclassication was due mainly to
human error. The action plan to address this adverse
nding consists of the following steps:
The revised DOD Instruction on budget control was
approved and implemented in July 2008.
Budget managers were again sensitised regarding the
importance of allocating the correct expenditure.
The audit between the PERSOL and FMS systems
were carried out and all differences were corrected.
A Standing Operating Procedure has been
implemented in place to ensure that all requests
for the creation of new codes comply with the
requirements and that the correct classication of
expenses takes place.
The AG did not nd any misclassications in the
nancial year 2007/2008 and the matter is therefore
regarded as solved.
An interim instruction was issued in April 2008, clearly
spelling out the processes and procedures for the control
of leases and also how to maintain the lease register.
Although Services and Divisions have maintained the
required register, a lack of training at unit level resulted in
limited successes being achieved. Interventions undertaken
include the deployment of specialists from the consortium
of KPMG and SAB&T(Operation Clean Audit Team)
throughout the DOD to assist with training and compilation
of lease registers. A letter was also distributed to Services
and Divisions to conrm the correct accounting of all hired
equipment.
Annual Report FY 2008 - 2009 230